topic Re: Repo effect on credit in Auto Loans

Repo effect on credit

billlori — Tue, 07 May 2024 00:10:10 GMT

My daughter-in-law cosigned for a auto loan before she was married. The girl she signed for has not been making payments and is real behind. She did give up the car to my daughter-in-law. The outstanding loan is around $10,000. The cars value is $5,000 at most.

How much will it effect my daughter-in-law and son's credit if they give the car back to the bank? I'm sure all the late/missed payments have already hurt, but to what degree I don't know.

Re: Repo effect on credit

JoeRockhead — Tue, 07 May 2024 00:30:46 GMT

A repo, voluntary or not is a major derogatory to have on one's credit. Any 60 day late or worse puts her on a dirty score card where things like her reported usage will be scored more harshly. The score penalty will decrease over time but will last the entire 7 years it's on there.

Idk how it would affect your son's credit unless he's on there too... may cause an issue if they're trying to qualify for a mortgage.

At times, the road to misery is paved with good intentions. Hope she gets it caught up and worked out.

Re: Repo effect on credit

billlori — Tue, 07 May 2024 01:20:04 GMT

So, credit wise, it would be better to keep the car and pay it off (or make the remaining payments on time). As a repo hits harder longer.

Re: Repo effect on credit

sccredit — Fri, 10 May 2024 19:41:46 GMT

@billlori wrote:
So, credit wise, it would be better to keep the car and pay it off (or make the remaining payments on time). As a repo hits harder longer.

Yes, 1000000000000000%

Re: Repo effect on credit

Snook_on_the_Line — Sun, 19 May 2024 03:00:03 GMT

@sccredit wrote:
@billlori wrote:
So, credit wise, it would be better to keep the car and pay it off (or make the remaining payments on time). As a repo hits harder longer.
Yes, 1000000000000000%

Agreed 1000%.
a charged off and repossessed vehicle loan definitely really hurts the entire time it's on your report. The sting never seem to diminish the entire seven years. Kept me down in the low 500s until it aged off.

Re: Repo effect on credit

IsambardPrince — Wed, 24 Jul 2024 08:50:45 GMT

@billlori wrote:
My daughter-in-law cosigned for a auto loan before she was married. The girl she signed for has not been making payments and is real behind. She did give up the car to my daughter-in-law. The outstanding loan is around $10,000. The cars value is $5,000 at most.

How much will it effect my daughter-in-law and son's credit if they give the car back to the bank? I'm sure all the late/missed payments have already hurt, but to what degree I don't know.

It's a good lesson for her. If someone asks you to co-sign a loan. Ask why they can't get one themselves.

If your daughter asked her friend to pull up her credit report and show her, her friend would have dropped it, I'm sure.

Voluntary Repossession is little more than a footnote on a repossessed car. It doesn't change anything except that when they sue you over the car, you might not have to pay as much in fees that they'll deduct from the value of the car. They will also get a very low price for this car at auto auction which means that your daughter would be doing good to just sell the car for $5,000 herself and cough up $5,000 to pay the note off, because if you "give the car back to the bank" expect all but $800-1000 of the car's value to disappear and then a lawsuit for $9,000 plus court costs and their attorney.

If the car runs and gets around okay and it's just not worth much, your daughter could keep it and make the payments and realize that she's lost a lot of money on a car that isn't worth half that.

Or you could make them come get it and add all those fees for sending the repo men. Then you'll owe them $10,000 plus their lawyer and court costs.

There's usually no good way out of it when you loan a friend money who can't get a loan. The banks looked and said no because they knew this would happen.

Most people don't understand what they're signing when they get a car loan. My mother didn't. The law requires them to quickly minimize their loss, which is the auction they won't get a good price at. They won't get a good price because they had repo fees to deduct from the value, and they're selling a repossessed car to a dealer through an auction company that wants money, which will be deducted.

My mom told me "and then they sent me a letter saying they sold my 2011 Impala for a very small amount of money just to insult me". They are legally required to tell you what they sold the car for, and any fees they're deducting. If you want to feel something, feel stupid for paying $17,000 for a car loan on something that was only worth about $9,000 private party, and then getting a loan to finance the car, the dealership nonsense, and an extended warranty that denies all your repair claims and added $3,500 and interest all by itself. She roasted her credit so bad that the only place she can buy a car from are bad credit car lots that see how much they can pack into a loan at high double digit interest rates.

Once you realize what you've done, do better next time.

The really nutty part of the story is she had a 2003 Impala that was paid off and ran, and it still runs 7 years after she filed for bankruptcy.

She had no reason to ever go to her credit union and that car lot to get the 2011.

Then after her bankruptcy, she quickly signed on another bad car loan with a bankruptcy car loan outfit and she's having more trouble out of the newer car than the 2003.

She apparently just likes donating her money to these places.

She never learns anything from her mistakes, the only explanation is some sort of mental problems going on that leave her functionally unable to manage her finances and make positive life choices.

Anyway, I said all of that because what your daughter did when she signed a loan for an acquantance makes even less sense than what my mom has been up to all these years. Your daughter didn't even get the car, she just got the shaft when her "friend" didn't do what she said she would.

Asking for a co-sign from a spouse isn't automatically alarm-bells going off, if the marriage is solid, but that's pretty much it.

Tell your daughter this. The world is an engine of loss. It takes and it takes from us. Other people are selfish and worried about their own problems and always looking to get more, and if that means cheating other people, that's what they'll do. No matter what they have they want more. If they're broke they want you to co-sign an auto loan so they can feed you to the bank when they stop paying. If they're rich, it means they'll sit back and watch the world rot while they accumulate several billion more dollars. It's never enough.

It's hard enough to get by for most people with the problems they have already. It certainly doesn't sound like your daughter has $10,000 to just go pay the bank and then try not to think about it again, so why would she sign someone else's car loan?

Why did the bank allow the loan? Same reason they allow co-signing a student loan. It's easier to sue TWO people and get something than it is to only sue one person who is too broke to get the thing they want.

Think of the lenders like The Wishmaster, the evil genie in all those movies, running around making people's wishes turn into a disaster.

You want a new car? They can make that happen. They can give you a $50,000 car right now, if they think they'll get another $25,000 in interest from you.

How many dollars per hour do you make again? (Rhetorical question....ask YOURSELF this whenever you want something.)

Pouring your future earnings potential into the coffers of some bank instead of getting something for it isn't a very wise proposition, it's an even worse one when you pledge your future earnings for a car for someone who stiffs you.

I loved how Dave Ramsey put it. A guy called in over a car loan he shouldn't have signed that was costing him over $700 a month at the time. He owed $40,000, it was worth $25,000, because the finance room people got him and the car depreciated faster than he could make payments over the first few years, and Ramsey says "If you saved $700 a month and didn't have this car, you could drive a $7,000 car in ten months. How many months is that loan?" and the guy says "84".

Car loans are for the birds man. Especially this sign and drive garbage. They're laughing at sign and drive people because you leave the dealership, have no equity, and then if you hit something in the next 2 years you'll owe the bank more than the car is worth because you didn't put any skin in the game. (Down Payment) So the finance room people try to roll in overpriced GAP insurance (much cheaper through car insurance, but nobody who finances a new vehicle seems to be the sharpest tool), into the loan so that can gather interest for the bank too.

Then the bank turns around and pays the dealer a percentage for steering your loan to them.

And they laugh again. Everyone laughs at your car loan, but you.

I literally had a Ford car salesman tell me GAP insurance was $995. Then when I flipped my phone open and said I'll just buy it from my car insurance company, he said "How about the same policy for $495?".

In other words, they'll change gears. They test you to see if you're dumb enough to pay the first thing they tell you, but it turns out they're making money even if you buy it for half that.

Re: Repo effect on credit

Horseshoez — Wed, 24 Jul 2024 11:31:15 GMT

Dude, wut?

Re: Repo effect on credit

IsambardPrince — Thu, 25 Jul 2024 05:51:39 GMT

@Horseshoez wrote:
Dude, wut?

Car loans are _awful_ AWFUL, *_AWFUL!!!!!_*, when you're signing one for yourself. They are generally a very bad idea followed by intense regret. Even if the interest rate isn't an outrage, you're doing a magic trick called "Let's take $70,000 and turn it into $30,000 in four years."

If I said to people you give me $70,000 and I'll hang onto it for four years and I guarantee you will lose $40,000 and then I'll hand you back the remaining $30,000, would anyone take me up on it? But car salesmen give people the same deal every day.

Car salesman do it for a living. It's like going into the ring with an Olympic wrestler. You are going to lose.

So, why do I keep hearing about people who have a perfectly reliable older car that's paid for and they're just "tired of it" and people signing "for a friend" that was too sketchy to fly past the bank's radar themselves? It's ridiculous.

My last post, in a nutshell.

Re: Repo effect on credit

Slabenstein — Thu, 25 Jul 2024 12:51:14 GMT

@IsambardPrince wrote:
@Horseshoez wrote:
Dude, wut?
Car loans are _awful_ AWFUL, *_AWFUL!!!!!_*, when you're signing one for yourself. They are generally a very bad idea followed by intense regret. Even if the interest rate isn't an outrage, you're doing a magic trick called "Let's take $70,000 and turn it into $30,000 in four years."

If I said to people you give me $70,000 and I'll hang onto it for four years and I guarantee you will lose $40,000 and then I'll hand you back the remaining $30,000, would anyone take me up on it? But car salesmen give people the same deal every day.

Car salesman do it for a living. It's like going into the ring with an Olympic wrestler. You are going to lose.

So, why do I keep hearing about people who have a perfectly reliable older car that's paid for and they're just "tired of it" and people signing "for a friend" that was too sketchy to fly past the bank's radar themselves? It's ridiculous.

My last post, in a nutshell.

I don't regret my car loan, and it was a pretty good idea, since whatever over the purchase price the car will ultimately cost me in interest, it's less than what I would lose if I couldn't get to work. (The same logic would probably apply to depreciation, but I have positive equity.)

Re: Repo effect on credit

Horseshoez — Thu, 25 Jul 2024 14:15:09 GMT

@IsambardPrince wrote:
@Horseshoez wrote:
Dude, wut?
Car loans are _awful_ AWFUL, *_AWFUL!!!!!_*, when you're signing one for yourself. They are generally a very bad idea followed by intense regret. Even if the interest rate isn't an outrage, you're doing a magic trick called "Let's take $70,000 and turn it into $30,000 in four years."

If I said to people you give me $70,000 and I'll hang onto it for four years and I guarantee you will lose $40,000 and then I'll hand you back the remaining $30,000, would anyone take me up on it? But car salesmen give people the same deal every day.

Car salesman do it for a living. It's like going into the ring with an Olympic wrestler. You are going to lose.

So, why do I keep hearing about people who have a perfectly reliable older car that's paid for and they're just "tired of it" and people signing "for a friend" that was too sketchy to fly past the bank's radar themselves? It's ridiculous.

My last post, in a nutshell.

Geez, there you go putting your tinfoil hat on again; clearly you do not understand credit or how to use it as a tool to make you more money. Given your lack of understanding, you are best advised to stay away from credit until you get educated; for many of us using credit wisely makes us money. Like it or don't, believe it or not.

Re: Repo effect on credit

IsambardPrince — Thu, 25 Jul 2024 20:49:01 GMT

@Horseshoez wrote:
@IsambardPrince wrote:
@Horseshoez wrote:
Dude, wut?
Car loans are _awful_ AWFUL, *_AWFUL!!!!!_*, when you're signing one for yourself. They are generally a very bad idea followed by intense regret. Even if the interest rate isn't an outrage, you're doing a magic trick called "Let's take $70,000 and turn it into $30,000 in four years."

If I said to people you give me $70,000 and I'll hang onto it for four years and I guarantee you will lose $40,000 and then I'll hand you back the remaining $30,000, would anyone take me up on it? But car salesmen give people the same deal every day.

Car salesman do it for a living. It's like going into the ring with an Olympic wrestler. You are going to lose.

So, why do I keep hearing about people who have a perfectly reliable older car that's paid for and they're just "tired of it" and people signing "for a friend" that was too sketchy to fly past the bank's radar themselves? It's ridiculous.

My last post, in a nutshell.
Geez, there you go putting your tinfoil hat on again; clearly you do not understand credit or how to use it as a tool to make you more money. Given your lack of understanding, you are best advised to stay away from credit until you get educated; for many of us using credit wisely makes us money. Like it or don't, believe it or not.

Loans where you owe the bank a lot more money than the car costs (Experian says the AVERAGE is 7% on a new car, and average means half are worse than that) are not a way to make money.

What math class did you attend where paying a bank 50% more than the car costs in cash while the car loses more than half its MSRP value in the same time period "makes money" for the customer?

I keep asking a very very simple question and you keep responding with insults and invective nonsense instead of an answer.

If the average is 7, that means half the loans are worse than that. You have heard of Experian, perhaps?

https://www.nerdwallet.com/article/loans/auto-loans/average-car-loan-interest-rates-by-credit-score

"Consumer credit reporting company Experian releases average auto loan interest rates in its quarterly Automotive Finance Market report. In the first quarter of 2024, the overall average auto loan interest rate was 6.73% for new cars and 11.91% for used cars."

If you indeed are getting a loan that loses the bank money due to inflation, it means that somewhere along the way, you got shafted somewhere where you paid less attention, because banks don't tend to loan out money at terms where they're really losing money. Someone shuffled some things around on you and started digging into your other pocket.

There are obviously some aging Boomers with a Sea-Doo loan who need to read up on things Ben Franklin knew in the 1700s.

I have better things to do with my day than repeatedly arguing with people who think that letting the bank throw a vacuum cleaner nozzle directly into their deposit account over a midlife crisis was a money maker because that's what the person at the finance counter told them.

My mother's ex-husband financed two Harley-Davidsons because he knew he was getting old and now he wanted to act macho. The bank flayed him over two things that are not at all practical and cannot even be driven 5 months out of the year where he lived. Sadly, this entire generation has a lot of people like him.

I'm starting to get to that age where there is less hair than there used to be. Doesn't mean I'm going to take out a personal loan and Discover what kind of a deal 12% interest for some hair plugs comes out to.

I paid cash for my car two years ago. I'd say it's held its value as well as could be expected. The private party value is approximately 95% of what I paid for it then. I didn't pay the bank any interest and kept all the money I didn't pay them. Maybe on the back end they loaned my money to someone with Harleys and Hair Plugs who is now Discovering the interest. What do I care? It's bringing home the bacon for me.

In addition, avoiding finance has also saved me another $1,316 a year vs. insuring the cheapest new car I could possibly buy. Which is also "not making money".

Most people will not only lose tens of thousands of dollars in 4 years to depreciation, which is a fact. They will also lose an average of 7% APR to a bank, amounting to over half the purchase price of the car, and many loans are worse than that. In addition, they are signing up to double or even triple their insurance premiums, which is money you get nothing for and will never see again, for a product that will punish you for using it.

I realized a while ago, a bit of wisdom that some people will never have. If you really want to do something dumb, you can find a way to turn it around and pound the table and insist, if only to yourself, that you did something intelligent.

Figuring things out for yourself is the only real freedom anyone will ever have. When you fell asleep in math class and get your education at a dealership finance counter, things will not work out well.

Good day, sir.

Re: Repo effect on credit

Slabenstein — Thu, 25 Jul 2024 20:47:34 GMT

@IsambardPrince wrote:
@Horseshoez wrote:
@IsambardPrince wrote:
@Horseshoez wrote:
Dude, wut?
Car loans are _awful_ AWFUL, *_AWFUL!!!!!_*, when you're signing one for yourself. They are generally a very bad idea followed by intense regret. Even if the interest rate isn't an outrage, you're doing a magic trick called "Let's take $70,000 and turn it into $30,000 in four years."

If I said to people you give me $70,000 and I'll hang onto it for four years and I guarantee you will lose $40,000 and then I'll hand you back the remaining $30,000, would anyone take me up on it? But car salesmen give people the same deal every day.

Car salesman do it for a living. It's like going into the ring with an Olympic wrestler. You are going to lose.

So, why do I keep hearing about people who have a perfectly reliable older car that's paid for and they're just "tired of it" and people signing "for a friend" that was too sketchy to fly past the bank's radar themselves? It's ridiculous.

My last post, in a nutshell.
Geez, there you go putting your tinfoil hat on again; clearly you do not understand credit or how to use it as a tool to make you more money. Given your lack of understanding, you are best advised to stay away from credit until you get educated; for many of us using credit wisely makes us money. Like it or don't, believe it or not.
Loans where you owe the bank a lot more money than the car costs (Experian says the AVERAGE is 7% on a new car, and average means half are worse than that) are not a way to make money.

What math class did you attend where paying a bank 50% more than the car costs in cash while the car loses more than half its MSRP value in the same time period "makes money" for the customer?

I keep asking a very very simple question and you keep responding with insults and invective nonsense instead of an answer

Since you're talking about a vehicle losing half its value, I assume you're thinking of a 5-year loan for a new vehicle. To pay 50% over the loan amount on a five year term, you'd have an interest rate of about 17.28%. But, as you say, average interest rate on a new car loan is around 7% (it's 7.18% this month), so that amount of interest-over-term is not something most new car buyers are going to see. A loan on a used vehicle that's at least a few years old isn't going to be facing nearly as much depreciation over a five-year term, either, so what @Horseshoez got from his math classes is probably that most car buyers can avoid the kind of numbers you're talking about pretty easily.

To the question of whether a car loan "makes money": a car purcase isn't an investment, and shouldn't be confused with one. Car loans are more like a utility bill, or a payment for a service: for most people, you need a car to live your life, so it's not like you can take the money you would have spent on the car and invest it at 12% or whatever instead. If you're talking about buying more car than you need: yeah, if you bring down your purchase price by buying less car and invest the difference in what your payments would have been, that's probably a better financial move, if you have those options. But if you need a reliable car to get to work and, like most people, don't have $15-$20k in cash over and above your emergency fund, then the necessity of a car loan isn't some kind of terrible financial move--like I said in my last post, you'll probably lose a lot more money not going to work than you will to interest or depreciation.

Re: Repo effect on credit

IsambardPrince — Thu, 25 Jul 2024 21:04:02 GMT

@Slabenstein wrote:
@IsambardPrince wrote:
@Horseshoez wrote:
@IsambardPrince wrote:
@Horseshoez wrote:
Dude, wut?
Car loans are _awful_ AWFUL, *_AWFUL!!!!!_*, when you're signing one for yourself. They are generally a very bad idea followed by intense regret. Even if the interest rate isn't an outrage, you're doing a magic trick called "Let's take $70,000 and turn it into $30,000 in four years."

If I said to people you give me $70,000 and I'll hang onto it for four years and I guarantee you will lose $40,000 and then I'll hand you back the remaining $30,000, would anyone take me up on it? But car salesmen give people the same deal every day.

Car salesman do it for a living. It's like going into the ring with an Olympic wrestler. You are going to lose.

So, why do I keep hearing about people who have a perfectly reliable older car that's paid for and they're just "tired of it" and people signing "for a friend" that was too sketchy to fly past the bank's radar themselves? It's ridiculous.

My last post, in a nutshell.
Geez, there you go putting your tinfoil hat on again; clearly you do not understand credit or how to use it as a tool to make you more money. Given your lack of understanding, you are best advised to stay away from credit until you get educated; for many of us using credit wisely makes us money. Like it or don't, believe it or not.
Loans where you owe the bank a lot more money than the car costs (Experian says the AVERAGE is 7% on a new car, and average means half are worse than that) are not a way to make money.

What math class did you attend where paying a bank 50% more than the car costs in cash while the car loses more than half its MSRP value in the same time period "makes money" for the customer?

I keep asking a very very simple question and you keep responding with insults and invective nonsense instead of an answer
Since you're talking about a vehicle losing half its value, I assume you're thinking of a 5-year loan for a new vehicle. To pay 50% over the loan amount on a five year term, you'd have an interest rate of about 17.28%. But, as you say, average interest rate on a new car loan is around 7% (it's 7.18% this month), so that amount of interest-over-term is not something most new car buyers are going to see. A loan on a used vehicle that's at least a few years old isn't going to be facing nearly as much depreciation over a five-year term, either, so what @Horseshoez got from his math classes is probably that most car buyers can avoid the kind of numbers you're talking about pretty easily.

To the question of whether a car loan "makes money": a car purcase isn't an investment, and shouldn't be confused with one. Car loans are more like a utility bill, or a payment for a service: for most people, you need a car to live your life, so it's not like you can take the money you would have spent on the car and invest it at 12% or whatever instead. If you're talking about buying more car than you need: yeah, if you bring down your purchase price by buying less car and invest the difference in what your payments would have been, that's probably a better financial move, if you have those options. But if you need a reliable car to get to work and, like most people, don't have $15-$20k in cash over and above your emergency fund, then the necessity of a car loan isn't some kind of terrible financial move--like I said in my last post, you'll probably lose a lot more money not going to work than you will to interest or depreciation.

I'm not calling everyone who gets a car loan dumb, but some people who do that are because they pay more for the car than its utility value and don't at least get the "least bad" loan terms they can and don't figure out who will give them the lowest insurance rate.

For some people with stellar credit who need to finance a little bit of a cheaper new Honda or something that at least will be on the road a while, and can swing it, I'm not calling those people dumb.

But it's not a way to "make money". For you, at least.

Debt is an odious thing to get into as least and as cheaply as you can, and get out of fast. If you can't do that, don't do it.

I'm not out there running the rat race, biting my nails, missing sleep because I'm not in a position to fall off the wheel and have a bank come after my car, like most people are.

Re: Repo effect on credit

Horseshoez — Thu, 25 Jul 2024 21:24:17 GMT

@IsambardPrince, so let's evaluate my current car loan to give the lie to your screed:

Vehicle: Fully loaded 2022 Tacoma TRD Sport 4x4 6MT (fully loaded means literally every option available plus several post-manufacturing add-ons)
Purchase date: October 2022
Purchase price : $43,993.00
Financed amount: $38,802.00
Finance term: 48 months
Interest rate: 2.49%
Interest cost: $2,004.62
Average depreciation after 48 months: 27.51% (source: caredge.com)
Imputed residual value after 48 months: $31,890.53
Interest paid as a percentage of purchase price: 4.557%

So:

Distortion/Spin/Lie 1: "What math class did you attend where paying a bank 50% more than the car costs in cash..."
- Last time I checked 4.557% is less than a tenth of the 50% you stated; what math class did you attend?
Distortion/Spin/Lie 2: "...while the car loses more than half its MSRP value in the same time period..."
- Again with the math, the average depreciation on my car is just over half what you stated; I don't believe I've ever owned a new car which lost that much value in such a short period of time.
Distortion/Spin/Lie 3: "But it's not a way to "make money". For you, at least."
- Make money is a relative term, I was going to buy the vehicle one way or another so the money was going to get spent one way or another; my options were:
  - Borrow the money at 2.49%
  - Take money out of a high yield savings account earning 4.25%
  - Take money out of my investments earning about 10%
- So yeah, I'm "making money" by not reducing the earnings potential of the money I have saved and invested.
Distortion/Spin/Lie 4: "Debt is an odious thing to get into as least and as cheaply as you can, and get out of fast. If you can't do that, don't do it."
- Debt is only "odious" if you don't understand how to leverage credit properly; in your case it is clear you don't understand it, so clearly your best option is to avoid it.
- In my case I currently owe $22,281.62 on the Tacoma; there ain't no way in hell I'm going to try and get out of debt one day sooner than the original termination date of the loan.
Distortion/Spin/Lie 5: "I'm not out there running the rat race, biting my nails, missing sleep because I'm not in a position to fall off the wheel and have a bank come after my car, like most people are."
- Measuring everyone else by your yardstick is a fool's errand and you'd be wise to avoid doing so in the future. Yeah, there are folks out there with low paying jobs with high interest loans on $70,000 vehicles, but I do not believe they are even remotely "most people".

Re: Repo effect on credit

IsambardPrince — Thu, 25 Jul 2024 21:26:23 GMT

@Horseshoez wrote:
@IsambardPrince, so let's evaluate my current car loan to give the lie to your screed:
Vehicle: Fully loaded 2022 Tacoma TRD Sport 4x4 6MT (fully loaded means literally every option available plus several post-manufacturing add-ons)
Purchase date: October 2022
Purchase price : $43,993.00
Financed amount: $38,802.00
Finance term: 48 months
Interest rate: 2.49%
Interest cost: $2,004.62
Average depreciation after 48 months: 27.51% (source: caredge.com)
Imputed residual value after 48 months: $31,890.53
Interest paid as a percentage of purchase price: 4.557%
So:
Distortion/Spin/Lie 1: "What math class did you attend where paying a bank 50% more than the car costs in cash..."
Last time I checked 4.557% is less than a tenth of the 50% you stated; what math class did you attend?
Distortion/Spin/Lie 2: "...while the car loses more than half its MSRP value in the same time period..."
Again with the math, the average depreciation on my car is just over half what you stated; I don't believe I've ever owned a new car which lost that much value in such a short period of time.
Distortion/Spin/Lie 3: "But it's not a way to "make money". For you, at least."
Make money is a relative term, I was going to buy the vehicle one way or another so the money was going to get spent one way or another; my options were:
Borrow the money at 2.49%
Take money out of a high yield savings account earning 4.25%
Take money out of my investments earning about 10%
So yeah, I'm "making money" by not reducing the earnings potential of the money I have saved and invested.
Distortion/Spin/Lie 4: "Debt is an odious thing to get into as least and as cheaply as you can, and get out of fast. If you can't do that, don't do it."
Debt is only "odious" if you don't understand how to leverage credit properly; in your case it is clear you don't understand it, so clearly your best option is to avoid it.
In my case I currently owe $22,281.62 on the Tacoma; there ain't no way in hell I'm going to try and get out of debt one day sooner than the original termination date of the loan.
Distortion/Spin/Lie 5: "I'm not out there running the rat race, biting my nails, missing sleep because I'm not in a position to fall off the wheel and have a bank come after my car, like most people are."
Measuring everyone else by your yardstick is a fool's errand and you'd be wise to avoid doing so in the future. Yeah, there are folks out there with low paying jobs with high interest loans on $70,000 vehicles, but I do not believe they are even remotely "most people".

I'm not even going to bother with a detailed reply. You're like arguing with a kitchen table. There's no point.

Other than to say that you have no concept of the compounding effect of interest payments over years, or the face that paying for a car loan while you have some money in your bank account doesn't mean you're making money.

Re: Repo effect on credit

Horseshoez — Thu, 25 Jul 2024 21:30:30 GMT

You have proven once again you don't understand money or credit. 'Nuff said.

Re: Repo effect on credit

IsambardPrince — Fri, 26 Jul 2024 01:18:20 GMT

@Horseshoez wrote:
You have proven once again you don't understand money or credit. 'Nuff said.

I'm not the one cutting my "investment" in half by driving something that's getting door dinged at Walmart.

It's a car. Drive it and don't pay the bank anything.

Anyway, I guess I'll just have to go cry into a pile of money I didn't stupidly donate to a bank and an insurance company. C'ya!

"(fully loaded means literally every option available plus several post-manufacturing add-ons)"

It means you donated them another several thousand dollars on a car that will wind up at the crusher eventually. "Fully loaded" can mean things like the dealership installed $10 rubber window trim from Amazon and charged you $595 for it these days. Seen Ford dealers doing this.

How much is a $595 plastic trim with interest to the bank? Still "making more money", yes? Taking an entire paycheck from you for $10 worth of plastic. Someone's "making money", not you, but someone.

I miss the $2,000 rustproofing then the car strangely rusted out anyway. Do they still do that in a "fully loaded" car? Probably $5,000 by now.

Instead of donating my money to them on an "investment" that halved, I practiced the art of manlihood and just work on the car sometimes with auto store parts. Ho hum.

The only thing better than not donating your money to a group of pirates at the bank, dealership, and insurance company and still having the money is making additional earnings on the money, which you still have.

Poor people often got that way by developing expensive habits. Financing them with Added Pain and Regret. (APR)

Also, speaking of insurance company scum, a lot of them are starting to slip in language that says after an uninsured driver slams into your expensive car, your uninsured motorist coverage only kicks in if they're ever identified. So good luck with that if people are anything like the "Temporary Visitor" Driver's License people in my neck of the woods. 20% of the people out there will have no insurance and panic and flee the scene.

You know how things are with the entire country falling apart, the police don't care enough to figure it out so this is another way having an expensive car loan can end poorly for you.

It wasn't a plastic engine like your Toyota so it was mostly just a gasket set and some RTV sealant. You know what metal is, don't you? The stuff they don't make car engines out of much anymore. Probably got one of those "fully loaded" plastic oil pans. I hope you don't ever find out what a rock can do to one of those.